ENTREPRENEURSHIP & STARTUP

CIA – I

Business Ideation and developing Business Model Canvas

Submitted By

POOJA N K

(1927159)

Submitted To

DR. ELANGOVAN N

SCHOOL OF BUSINESS AND MANAGEMENT

CHRIST UNIVERSITY

JULY 2020
Contents
I. INTRODUCTION 1
II. ANALYSIS OF VARIOUS BUSINESS MODEL CANVAS 1
III. BUSINESS PLAN 3
IV. ANALYSIS OF THE INDUSTRY 4
1. PESTLE ANALYSIS 4
2. PORTER’S FIVE FORCE MODEL 4
V. OPPORTUNITIES 5
VI. SOCIAL RESPONSIBILITY & ETHICAL SENSITIVITY 5
VII. BUSINESS MODEL CANVAS 5
VIII. CONCLUSION 8
REFERENCES 9
 I. INTRODUCTION
The business model canvas is a strategic planning tool used by managers/business owners to
illustrate their business model and develop it. The canvas template of the business model clearly defines the
main elements that make up a company. Additionally, a business plan is distilled into a compact form. In
this way, for the business plan, the business model canvas prototype serves as an executive summary.

“People who don’t realise that the best apps are underpinned by a great business model run the risk of
wasting years developing an App that has no chance to succeed. Others compile pitch decks that have little
chances to be rewarded if there is no backing data on the business model.”
This is must-know knowledge for entrepreneurs and Start-ups

II. ANALYSIS OF VARIOUS BUSINESS MODEL CANVAS

New entities or businesses will be successful only when the gap is identified and the same can be
fulfilled, in an efficient manner that can solve a simple business problem with an innovative solution!
Food is one of these areas where the demand will have consistency, provided we cater the newer varieties
that the generation is looking for along with the authentic foods that are difficult to replicate!
Business Canvas models, with respect to the top players in the industry
Let's consider the companies KFC, McDonalds and Uber eats, all the three have their own way of catering
same set of customers in a different way.

Figure1: KFC-Business Canvas Model

Figure2: UBEREats-Business Canvas Model

Figure2: McDonald’s-Business Canvas Model

Some insights for better understanding…
● Value proposition will be most sought out thing that drives the business in the food industry, where
home-made chicken for KFC, quality uniformity for McD and amazingly fast delivery for Uber eats
are still contributing to their success
● Personal assistants who help with the orders in KFC, social media stronghold and customer care in
Uber eats helped them to maintain a very good rapport with the customers 
● Cost structure for this industry depends on the area that the branch is located and can be mostly
volatile, hence proper understanding the of nuances will help on a long run, majority being the salary
of the employees and the cost that the suppliers are expecting
● Partnership can always help as a catalyst for any business for instance - Pepsi, strategic partners
including franchises and the restaurants that supply food play major roles in KFC, McD and Uber
eats respectively!
● Revenue streams, key resources and different channels will boost the entire business model
efficiency to become a robust process that generates revenue

What if,
Tasty food from KFC and reasonable pricing from McD delivery speeds from Uber eats can be
consolidated into a single business model, which provides authentic local food also in trucks that can cater a
larger audience in not so boring same locations, where the change in menu can also be incorporated
according to the area that we serve on a typical day comes into reality!
“With a proper plan, organising the unorganised will always help in growing business with repeat
customers! 
Who dislikes if the same taste and pricing for the local foods is available throughout!!”

III. BUSINESS PLAN

“SWAD” a desi and authentic Indian food recipes served on streets through Food Trucks.

This business plan is a desi Indian food truck to operate in central Bangalore. What makes our business
different and special is that there is no other food truck with the same kind or somewhat similar type of food
menu and even restaurants in Bangalore will serve what we will serve to our customers.

IV. ANALYSIS OF THE INDUSTRY

There is always competition among every business in any industry. To develop a competitive advantage
and to adjust to competitive environment when starting a business, it is essential to analyze and assess the
level of industry’s competition. This is done with the help of following methods:
 1. PESTLE ANALYSIS
● Political: For the business of a “Swad” food truck, there shouldn’t any be political threats
about the raw materials, the importation of products or the permits to park the truck in the
different areas of Bangalore
● Economic: Pay taxes, salaries other expenses won’t be an expensive cost. The money used to
start the business comes from a couple of investors, who will own some part of the business.
● Social: This factor shouldn’t be a problem because Bangalore is a multicultural city and open
to all kind of cultures and food
● Technological: The equipment necessary for this business is quite basic and is not necessary
complex and expensive devises
● Legal: About the regulations related to hospitality and serving food is just about to respect
them and be sure that we accomplish all the requirements
● Environmental: There are quite a lot of food trucks in Bangalore and probably they have less
environmental effects than restaurants. In order to have the most green business as possible
we would to install a solar panel to provide the necessary power, also it is possible to use
recycle plates, cutlery and boxes for the take away

2. PORTER’S FIVE FORCE MODEL

● The barging power of suppliers. The suppliers have more power when there are limited
numbers of them and any business needs suppliers’ help strongly
● The barging power of buyers. If the business works with fewer influential buyers, then we
can often define their terms
● The threat of potential new entrants. The business can secure advantageous position, if there
are strong barriers to entry to the segment
● The threat of substitutes. If substitution is easy to obtain, then the company’s power can
decline
● The extent of competitive rivalry. Large number of competitors with the same attractive
product will weaken the company’s power. However, having the company’s product/service
unique, it will have strong position

V. OPPORTUNITIES
● The concept of “SWAD” with an idea of authentic food menu can come into market by serving
better quality food at a marginally lesser price
● Since most of the competitors are focusing on fast food routines, “SWAD” with its ancient cooking
recipes can add value to attract the customers
● Since most of the population today are health conscious, utilizing organic resources can help
“SWAD” to be the top choice
VI. SOCIAL RESPONSIBILITY & ETHICAL SENSITIVITY
The owners of today’s business have a lot more on their plates rather than just cooking and serving
delicious food. A significant part of the business is social responsibility to do the right thing for employees,
the society and the natural environment. Among the many ways to show the world that you care about are
respecting diversity, donating to social organisations, adopting sustainable practises and supporting safe
lifestyles.There are three dimensions of social responsibility: Ethical, altruistic and strategic. In each case,
the fundamental principle is to respect, value and do no damage to one’s marketplace, workplace,
community or climate. While only one of the strategic prongs is intended to attain profit, studies show that
the food truck can and always benefit from both of them by creating a pleasant working environment,
desirable publicity and favourable reputation.

● Ethical social responsibility involves actions like paying fair wages to the employees and buying
necessary resources from a local farmer
● Altruistic Activities involves focus on issues of food insecurity and hunger within our community by
donating the left-over food to some NGO’s or Orphan homes instead of considering it as waste and
claiming less payment for employees
● Installation of solar panels for power generation as alternative or renewable fuel sources, in order to
reduce carbon footprint
● Usage of recycle plates, cutleries and boxes for serving purpose
● Installation of water osmosis technology where the water used for dish washing can be reused for
hand washing
● Monitoring all the operations for possible improvements, from where we purchase our produce to
what we do with garbage
● Installing a rooftop garden that provides fresh herbs for the flavourful dishes
● Gluten free food will be served keeping in consideration of the dietary plans

VII. BUSINESS MODEL CANVAS

There are nine main building blocks in the business model canvas template:
1. Key Partners
2. Key Activities
3. Key Resources
4. Value Propositions
5. Customer Relationships
6. Channels
7. Customer Segments
8. Cost Structure
9. Revenue Streams
 KEY PARTNERS KEY ACTIVITIES VALUE CUSTOMER CUSTOMER
PROPOSITIONS RELATIONSHIP SEGMENT
● Distributio ● Marketing
n partners and Sales ● Ingredient ● Online ● Families
● Investors ● Branding Innovation Services ● Youngsters
● Payment ● Product R&D ● Referral ● Healthy
● Distribution
Processors ● Procurement Discounts Lifestylists
Innovation ● Loyalty ● Medical
● Fast service Discounts patients

KEY RESOURCES CHANNELS

● Product ● Exhibitions
● Brand & Events
● Employees ● Partner
● Partners Events
● Word of
Mouth

COST DRIVERS REVENUE STREAMS

● Production Inputs(Ingredients) ● Product Sales

● Staff Salaries ● Franchising/ additional outlets
● Equipment & Facilities
● Regulatory & Compliance
● Marketing & Sales

1. Key partners are the companies or people the business works with in order to create a strategic
relationship. A few examples of key partners are suppliers or distribution partners in the supply chain.

● Distribution Partners: “SWAD” partners with several delivery partners in order to serve the
customers
● Investors are those who brought the initial rounds of funding to the table. The funding helped the
team “SWAD” to develop the functionality and its service line
● Payment Processors: “SWAD” collaborates with several payment ventures such as GooglePay,
Phone pe etc

2. Key activities are specific activities or tasks that are fundamental to the operation of “SWAD”.

● Procurement of fresh resources in bulk from local farmers

● Marketing & Sales of the “SWAD” food items
● Branding, developing and refining the customer loyalty to keep the brand growing
3. Key resources are the assets necessary to operate and deliver the value proposition.

● “SWAD’s” food items/Products are its real resource

● Employees are key drivers who are on the supply side of “SWAD” and they can join or leave at a
moment’s notice. It is essential to have a sufficient number of them to be able to serve the customers 
● All of its Partners play a major role in enhancing the services of “SWAD”

4. Value propositions are arguably the most important element of the business model canvas . The value
proposition determines the fundamental offering the company is trying to give its customers. It is the
primary driver of business operations.

● Fast delivery of orders is one of the major value propositions of “SWAD”

● Innovations in its recipe
● Advancements in the distribution pattern

5. Customer relationships are the different types of interactions a company has with its customers.

● Online services are provided in order to value the customers preferences

● Referral and Loyalty Discounts are provided

6. Channels are the different structures and methods that are used to deliver “SWAD’s” product and value
proposition to its customers. Channels encompass all of a company’s supply, distribution, and marketing
channels. It is important to consider all channels of a company and make sure they are functioning
cohesively.

● Exhibitions and Partnership Events

● Word of Mouth

7. Customer Segments are the different types of customers that “SWAD” wants/is serving. As “SWAD”
has widet range of products it would want to interact with different types of customers.

● Families
● Younsters
● Healthy Lifestylists
● Medical Patients

8. Cost Drivers refers to how a “SWAD” spends money on its operations. It consists of the company’s key
costs and the company’s level of focus on costs. “SWAD” is a value-driven company, thus it focuses on
creating value for its customers, with less focus on cost.

● Production Inputs(Ingredients)
● Staff Salaries
● Equipment & Facilities
 ● Regulatory & Compliance
● Marketing & Sales,advertising expenses, expenses related to consumer acquisition and retention,
including consumer discounts, promotions, refunds, and credits, Driver referrals, and allocated
overhead
9. Revenue streams are a company’s source of cash flows. They are the final element of the business model
canvas . Revenue streams are the different ways your “SWAD’s” value proposition generates money. A
company might have multiple revenue streams.

● Product Sales
● Franchising/Additional Outlets

VIII. CONCLUSION
For any business to run smoothly and to succeed these elements of business model canvas must be
defined properly in order to follow the track all through the lifetime of the business and lead a successful
journey. By having a clear view on the complete business model, opportunities for sustainable innovation
can be discovered. An example already deployed by “SWAD” might be the stronger partnership with
suppliers in order to create shared value. Thus Business Model Canvas (BMC) is a strategic management
tool to quickly and easily define and communicate a business idea or concept.
REFERENCES
i. https://www.google.com/search?
q=business+canvas+model&oq=b&aqs=chrome.1.69i57j69i59l3j69i60l4.5589j0j7&sourceid=chrom
e&ie=UTF-8
ii. https://innovationtactics.com/business-model-canvas-uber/
iii. https://corporatefinanceinstitute.com/resources/knowledge/strategy/business-model-canvas-template/
iv. https://www.finchandbeak.com/1072/the-mcdonalds-business-model-canvas.htm#:~:text=The
%20Business%20Model%20Canvas%20of,the%20elderly%20and%20business%20people.
v. https://www.studymode.com/essays/Food-Truck-Analysis-48842142.html
vi. https://www.marketingtutor.net/pestle-analysis-of-a-restaurant/